CenterPoint Energy Inc (CNP)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,667,000 | 5,010,000 | 5,924,000 | 5,145,000 | 4,489,000 |
| Inventory | US$ in thousands | 714,000 | 770,000 | 876,000 | 608,000 | 500,000 |
| Inventory turnover | 6.54 | 6.51 | 6.76 | 8.46 | 8.98 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,667,000K ÷ $714,000K
= 6.54
The inventory turnover ratio of CenterPoint Energy Inc has shown a decreasing trend over the past five years. In December 31, 2020, the inventory turnover was 8.98 times, indicating that the company sold and replaced its inventory almost 9 times during that period. However, by December 31, 2024, the inventory turnover had decreased to 6.54 times, suggesting a slowdown in the rate at which the company is selling and replenishing its inventory.
A declining inventory turnover ratio can signify potential issues such as overstocking, slow-moving inventory, or ineffective inventory management. Investors and analysts may need to investigate further to determine the specific reasons behind this trend and assess its potential impact on the company's operational efficiency and overall financial performance.
Peer comparison
Dec 31, 2024